Economics Standard 1: 2020 Practice

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What is the best explanation of why there will always be scarcity?

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while peoples' wants are unlimited, resources are limited.

Front

Scarcity is the basic economic condition that results from society not having enough resources to produce all the things people would like to have. A society's economic system determines the way a society allocates its scarce resources to produce goods and services.

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the way a society allocates its scarce resources to produce goods and services.

Front

Sauthoff's company of nine workers produces 150 units of a product with a marginal cost of $10 for the last unit. The product sells for $12 per unit. If Sauthoff adds one additional worker, the marginal cost would be $13. In this case, Sauthoff should

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keep the number of workers at nine.

Front

The study of how individuals, institutions, and society make choices under the conditions of scarcity is

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economics.

Front

What will the owner of a car wash decide regarding hiring an additional worker, considering that the marginal costs of $270 per week are greater than the marginal benefits of $250 per week?

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The owner will not hire the worker because the marginal costs of $270 per week are greater than the marginal benefits of $250 per week.

Front

For a family that uses 5 jars of mustard for a year, what is the best purchasing option for a 2 year supply of mustard when considering marginal costs and benefits? Options: one box with 6 jars of mustard and 4 single jars of mustard, two boxes with 6 jars of mustard each, one case or 24 jars of mustard, 10 single jars of mustard

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one box with 6 jars of mustard and 4 single jars of mustard

Front

"Marginal benefit" is MOST related to what economic concept?

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opportunity cost

Front

How does the scarcity of resources contribute to international conflict?

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Countries in possession and control of resources have economic power.

Front

An economy experiencing high levels of unemployment would most likely be producing at which point? Options: point A, point B, point C, point D

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point C

Front

Which point on the Production Possibilities Curve represents a situation in which resources are not being used effectively? A, B, C, D

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C